Parsottam Madhavji Bhanusali, M/s Hinglaj Roadways, Godown Area, Mithapur - 361345 vs. Income Tax Officer, Ward – 1(4), Dwarka

Parties Involved

Facts Summary

The assessee, Parsottam Madhavji Bhanusali, engaged in the transport business under 'M/s Hinglaj Roadways', filed an original return of income for the assessment year 2015-16 on 14.09.2015, reporting a total income of Rs.3,42,660/-. The case was reopened under section 147 of the Income Tax Act, 1961, due to reason to believe. The assessing officer noticed that the assessee made cash payments to M/s V.M. Barai, violating section 40A(3) of the Act, and disallowed Rs.34,00,595/-. The assessee appealed to the Commissioner of Income Tax (Appeals), who confirmed the disallowance. The assessee further appealed to the Income Tax Appellate Tribunal.…

Legal Issues

• 1. Whether the disallowance made by the assessing officer under section 40A(3) of the Act is valid.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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